In Ontario, new homes are subject to a 13% HST, adding significant cost, but a rebate program helps offset this for primary residences. The rebate has federal and provincial parts, with a maximum combined rebate of $24,000 for homes up to about $368,000. For homes over $450,000, only the provincial rebate applies. Buyers must use the home as their primary residence and not for investment. Builders often apply the rebate at closing, reducing the purchase price.